Efficient Frontier and Attainment Rate for Business Transformation Outsourcing

Abstract

A method and system for establishing an Efficient Frontier (EF) and Attainment Rate (AR) for Business Transformation Outsourcing (BTO) is presented. EF is the maximum service level achievable at a point in time for a specific business process or business process area. AR is the pace at which the EF can be reached from an initial value. Clients, outsourcers, and third-parties determine whether proposals are infeasible (above EF) or inefficient (below AR). Fact-based discussions of the merits and limitations of various implementation initiatives are supported. A determination is made as to whether there are any business segments to which different EF and AR apply. Any underlying factors for the EF and AR of each business segment are determined, and any change (rise or fall) of EF over time is predicted to maintain an optimally accurate EF and/or AR for each business segment.

1 . A method for determining whether an outsourcing bid is both feasible and efficient by establishing Efficient Frontiers (EF) and Attainment Rates (AR), wherein EF is a maximum service level achievable at a point in time for a specific business process area in the enterprise, and wherein AR is a pace at which EF can be reached from an initial Service Index (SI), where SI is a service level measurement applicable to the specific business process area in the enterprise, the method comprising: 
 determining an EF for a particular business process area;    determining an initial SI for the particular business process area;    determining an AR for the particular business process area for reaching the EF from the SI; and    utilizing the EF, SI and AR to determine whether a bid is feasible and efficient for the particular business process area.    
     
     
         2 . The method of  claim 1 , wherein a single enterprise has multiple particular business process areas.  
     
     
         3 . The method of  claim 2 , wherein each of the multiple particular business process areas are classified as segments defined a priori based on industry, geography, and size.  
     
     
         4 . The method of  claim 1 , wherein the EF is defined based on business design factors and environmental factors of an enterprise that is utilizing outsourcing.  
     
     
         5 . The method of  claim 4 , wherein the business design factors include which customers are targeted, how profit is captured from each customer, how sustainability is built into a business design, which activities and assets are required by an enterprise, and means by which the enterprise conducts its operations.  
     
     
         6 . The method of  claim 4 , wherein the environmental factors include current and pending legislation affecting the enterprise, type of workforce in the enterprise, types of skills and knowledge in the workforce of the enterprise, and type of information technology used by the enterprise.  
     
     
         7 . The method of  claim 1 , further comprising: 
 creating a simulation of an outsourcing of activities from the enterprise using the EF, SI and AR.    
     
     
         8 . The method of  claim 7 , wherein the simulation includes results of prior EFs, SIs and ARs from other enterprises.  
     
     
         9 . The method of  claim 1 , further comprising visually evaluating a graphical representation of the ER, SI and AR to determine whether a bid is feasible and efficient.  
     
     
         10 . The method of  claim 9 , further comprising: 
 utilizing the EF to determine a feasible region and an infeasible region in the graphical representation, wherein EFs in the infeasible region indicate that outsourcing is economically impractical or physically impossible, and wherein EFs in the feasible region indicate that the outsourcing is economically practical and physically possible.    
     
     
         11 . A machine-readable medium having a plurality of instructions processable, by a machine embodied therein, wherein said plurality of instructions, when processed by said machine causes said machine to perform a method for determining whether an outsourcing bid is feasible and efficient by establishing Efficient Frontiers (EF) and Attainment Rates (AR), wherein EF is a maximum service level achievable at a point in time for a specific business process area in the enterprise, and wherein AR is a pace at which EF can be reached from an initial Service Index (SI), where SI is a service level measurement applicable to the specific business process area in the enterprise, the method comprising: 
 determining an EF for a particular business process area;    determining an initial SI for the particular business process area;    determining an AR for the particular business process area for reaching the EF from the SI; and    utilizing the EF, SI and AR to whether a bid is feasible and efficient.    
     
     
         12 . The machine-readable medium of  claim 11 , wherein a single enterprise has multiple particular business process areas.  
     
     
         13 . The machine-readable medium of  claim 12 , wherein each of the multiple particular business process areas are classified as segments defined a priori based on industry, geography, and size.  
     
     
         14 . The machine-readable medium of  claim 11 , wherein the EF is defined based on business design factors and environmental factors of an enterprise that is utilizing outsourcing.  
     
     
         15 . The machine-readable medium of  claim 14 , wherein the business design factors include which customers are targeted, how profit is captured from each customer, how sustainability is built into a business design, which activities and assets are required by an enterprise, and means by which the enterprise conducts its operations.  
     
     
         16 . The machine-readable medium of  claim 14 , wherein the environmental factors include current and pending legislation affecting the enterprise, type of workforce in the enterprise, types of skills and knowledge in the workforce of the enterprise, and type of information technology used by the enterprise.  
     
     
         17 . The machine-readable medium of  claim 11 , wherein the method further comprises: 
 creating a simulation of an outsourcing of activities from the enterprise using the EF, SI and AR.    
     
     
         18 . The machine-readable medium of  claim 17 , wherein the simulation includes results of prior EFs, SIs and ARs from other enterprises.  
     
     
         19 . The machine-readable medium of  claim 11 , wherein the processable instructions are deployed to a server from a remote location.  
     
     
         20 . The machine-readable medium of  claim 11 , wherein the processable instructions are provided by a service provider to a customer on an on-demand basis.